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PIC 99-1

Procurement Information Circular

January 01, 1999


PURPOSE: To provide guidance on the procedures for implementing the FAR requirement to evaluate small disadvantaged business (SDB) participation in competitive negotiated acquisitions.

BACKGROUND: Federal Acquisition Circular (FAC) 97-07, as amended by FAC 97-09, established a new requirement to evaluate SDB participation in certain circumstances, effective January 01, 1999. Significant FAR changes include:

1. FAR 15.304(c). The extent of participation of small disadvantaged business concerns in performance of contracts in Standard Industrial Classification (SIC) Major Groups designated by the Department of Commerce shall be evaluated in unrestricted competitive, negotiated acquisitions expected to exceed $500,000 ($1,000,000 for construction). This evaluation may be performed under a factor or significant subfactor.

2. FAR 19.201(b). The designated SIC Groups may be found at http://www.arnet.gov/References/sdbadjustments.htm.

3. FAR 19.1202-1. Credit under the evaluation is not available to SDB concerns that receive a price evaluation adjustment under FAR 19.11.

4. FAR 19.1202-2(b). The new evaluation requirement cannot be used in small business set-asides, 8(a) acquisitions, lowest price technically acceptable acquisitions performed under FAR 15.101-2, or contracts performed entirely in foreign countries.

5. FAR 19.1204(c). Monetary incentives may be provided for SDB subcontracting in the designated SIC Groups through use of the clause at 52.219-26, SDB Incentive Contracting, or through an award fee evaluation factor.

GUIDANCE: In implementing FAC 97-07, contracting officers shall comply with the following instructions:

1. On applicable unrestricted acquisitions, contracting officers shall perform the required FAR 15.304(c) evaluation as follows:

a. For NFS 1871 "Best Value Selection" (BVS) MidRange acquisitions, SDB participation shall be evaluated as a BVS value characteristic. If such evaluation is considered impractical, the acquisition shall be conducted using the procedures of FAR Part 15 and NFS Part 1815 instead of MidRange.

b. For all other competitions:

i. When the solicitation includes a Mission Suitability factor, SDB participation shall be evaluated under a separate subfactor. A deviation to NFS 1815.304-70(b)(2) is approved to increase the limitation on the number of Mission Suitability subfactors in such cases to five.

ii. When the solicitation does not include a Mission Suitability factor, SDB participation shall be evaluated either as a separate factor or a subfactor, whichever is considered most appropriate.

c. SDB concerns that choose the FAR 19.11 price evaluation adjustment shall receive the lowest possible score/rating under the FAR 15.304(c) evaluation. (For example, zero for a scored Mission Suitability subfactor, or no consideration under a MidRange BVS value characteristic.)

2. The language in NFS 1816.405-274(f) on establishing SDB utilization as an area of particular emphasis in award fee evaluation is only applicable to contracts in the Department of Commerce designated SIC Groups and only if the clause at 52.219-26 is not used.

EFFECTIVE DATE: The PIC is effective January 1, 1999, and shall remain in effect until the NFS is revised to incorporate the evaluation procedures described in the "Guidance" section.

HEADQUARTERS CONTACTS: Part 15/1815 issues: Paul Brundage, Code HK, (202) 358-0481; Part 19/1819 issues: Christopher Jedrey, Code HK, (202) 358-0483; and Part 1871 issues: Celeste Dalton, (202) 358-1645.

Tom Luedtke
Acting Associate Administrator for Procurement